Baidu's censored answer to Wikipedia

By Eva Woo, BusinessWeek
Thursday, November 15, 2007 01:24 PM

Google censors search results in China
The rise of Baidu Baike raises an important question: Is a censored Internet service better than no service at all? The answer is relevant not just for encyclopedias but for search engines, blog services, e-mail providers, and more.

Even Google has decided to censor its search results in China, arguing that Chinese Web surfers benefit from some access to outside information, even if the information is somewhat limited.

The Chinese are divided over Baidu's decision to take advantage of a rival's political misfortune. In one online discussion board on a popular Chinese social-networking site, DouBan, several people argued that letting Chinese people have access to a huge pool of knowledge is more important than a few exclusions.

"Many Internet users are not interested in politics, and they want to use the reference site simply to learn more knowledge, not to become some fighter," wrote one participant.

Another group disagreed. One person argued that blocking content violated the entire spirit of a volunteer site, where participants are essential to creating something of value. "What makes Wikipedia a huge reference site is its ability to mobilize volunteers," this person wrote.

Still, Baidu is doing just fine financially at this point. On Oct. 25, the company announced that revenues in the third quarter more than doubled, to US$66.3 million, while net income also more than doubled, to US$24.2 million.

Baidu's stock surged the next day, rising 6 percent to US$353.39 a share. "This quarter, we continued our focus on working hard to know our users and staying ahead of the trends," said Robin Li, the company's chief executive, during the most recent quarterly earnings call. "This is why Baidu Search continues to be the market leader by a wide margin." (Baidu's stock has since fallen, to about US$300 a share, along with many other Chinese stocks.)

Baidu is launching a number of new initiatives. It recently started a voice-based search service, using human operators rather than voice-recognition technology, and a search site for kids. It also plans to launch its first e-commerce site next year, with a consumer-to-consumer auction service similar to eBay's.

"We will keep working to innovate and understand user needs," said Li. "I'm confident that this is the right strategy to keep us growing and well ahead of the competition."


See also:  Web sites, Web 2.0
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